Module Examination

MODULE TITLE: INTERNATIONAL MONETARY AND FINANCIAL SYSTEMS

 
MODULE CODE: 5106LBSBW
 
There is ONE Section and SIX Questions on this paper.
 
Any THREE questions. All questions carry equal marks.

1. Explain how the credit crisis of 2007 to 2009 arose.

2. Explain briefly the various roles of the Central Bank. Do you think that Central
banks should be independent? Give your reasons. 
3. Describe the various ways in which firms can raise funds for investment
purposes. Discuss the relative merits of each type of finance, in particular
debt and equity finance.
4. Do you think it is better for the domestic economy to adopt a system of
floating or fixed exchange rates? Explain carefully using diagrams and use
real world events to illustrate your arguments.
5. Explain what is meant by ‘a derivative’ and why they are useful in finance.
What factors affect the value of traded options?
6. What are the main strengths and weaknesses of the current system of bank
regulation?